Nichola,Inc $$\begin{array} { l r } \text { Materials } & \$ 73,750 \\\text { Conversion cost } & 57,200 \\\text { Total cost } & \$ 130,950\end{array}$$

question 80

Essay

Nichola,Inc.manufactures products that pass through two processes.The company uses the weighted average method to compute unit costs.During April,equivalent units were computed as follows:
Cost was added as follows:
Required:
$$\begin{array} { l r } \text { Materials } & \$ 73,750 \\\text { Conversion cost } & 57,200 \\\text { Total cost } & \$ 130,950\end{array}$$ A. Determine the cost of the goods transferred out.
B. Determine the cost of ending work in process.
Determine the cost of the goods transferred out if materials in ending work in process had
C. been $90 \%$ complete and conversion in ending work in process had been $70 \%$ complete. Round costs per unit to two decimal places if necessary.

Identify the regulatory bodies associated with futures contracts.

Understand the pricing theories of futures markets.

Gain insights into the process of marking to market and the role of the clearinghouse.

Understand the impact of futures markets on spot markets and vice versa.

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Definitions:

Predictive Value

The capability of financial information to help users in predicting future trends and outcomes.

Confirmatory Value

The aspect of financial information that helps users confirm or correct prior expectations.

Fair Value

The price at which an asset would be bought or sold in an orderly transaction between market participants at the measurement date.

Historical Cost Principle

An accounting principle that states assets should be recorded and reported at their original purchase price, not their current market value.